Credit card fraud takes many different forms. BBB has recently been notified of an ongoing telemarketing scam in which people's credit card information is being stolen and used for purposes of identity theft.
This particular scam is effective because the "telemarketer" acts and sounds like an official representative of the credit card agency and pretends to be protecting you from someone else fraudulently using your credit card. The caller also happens to already have information about you such as your name and credit card number.
This is typically how the scam works:
- The scammer calls and identifies themselves as an official security representative/investigator of your credit card agency.
- The caller states that your card appears to have been used fraudulently used or that an unusual purchase pattern has been identified on your credit card. You are then asked if you have made a purchase for a certain dollar value (usually under $500). A purchase which in reality you have not made.
- Once you confirm that you have not made such a purchase the caller states that the charges will be removed from your card and that the information will be added to an ongoing fraud investigation. You are asked to carefully watch your statements in the future and report any additional suspicious purchases to a 1-800 number on your credit card. You are given a "Control Number" in which to identify yourself if and when you call back, so the information can be added to the investigation file.
- The caller then states that they need to verify that you are in possession of your card and asks you to give them the "Security Numbers" or PIN on the back of your card. These are the 3 numbers typically found on the back of your credit card that are most often used as part of the security feature when doing Internet banking.
This last point is the key element of the scam. As soon as the caller has the 3 numbers on the back of your card, they are able to make online purchases themselves using your credit card information, which they have already managed to steal from somewhere else.
Victims have found that within 15 minutes of hanging up the phone that a fraudulent credit card purchase has in fact been made online using their card.
To protect yourself from becoming a victim of this scam never give out the 3 digit PIN number on the back of your card. Legitimate representatives of a credit card company will never call you unsolicited and ask you for this information as they already have it on file (they were the ones that issued the card).
If you do receive such a call simply hang up the phone. If you feel you have become a victim of this scam file a police report and contact your credit card agency immediately. You should also contact PhoneBusters 1.888.654.9426 1.888.654.9426 to report the scam.